Pre-Opening Wheat Market Report for 9/14/2010
Related Keywords: Agriculture Email Print | December wheat was 5 cents lower overnight. The dollar was mixed to slightly higher. Deliveries against the September futures contract were 1,365 contracts today with the total for the delivery period at 28,009. Today is the last trading day for September futures. After pushing to a new 1-month high yesterday, the December wheat contract eased from its highs and then traded moderately lower overnight. Traders said that a lower dollar and increased interest in the commodity sector by world investors is helping to buoy open interest and prices in wheat. A branch of The Australian Bureau of Agricultural and Resource Economics (ABARE) raised its wheat production forecast by 13% to 25.1 million tonnes today. This is the biggest estimate of that crop by any public agency so far, and this further enhances the outlook for an adequate world supply for the remainder of the 2010/11 crop year. The government of Australia also raised its wheat export projection by 20% over last year to 18.376 million tonnes. The La Nina effect in the southern Pacific is thought to have boosted rain across the eastern wheat belt in Australia this year. This area typically produces 60% of their wheat crop. This favorable outlook is expected to set the stage for a 20% increase in Australian wheat exports this marketing year. The Russian Weather Service reports that only 30% of that country’s winter wheat fields currently have enough moisture for planting to occur. The south central Volgograd region in particular has had virtually no rain. The USDA weekly Crop Progress report showed the spring wheat harvest at 83% complete compared to 76% last week and 67% last year. The 10 year average for this time of year is 79%. This week’s export inspections for wheat were 30 million bushels on yesterday’s report, up from 23.3 last week. Inspections need to average 25.3 million bushels each week to reach the USDA’s current export forecast. Buyers in Israel are looking to purchase up to 44,000 tonnes of feed wheat. Turkey’s state grain board is looking to sell 70,000 tonnes of durum wheat and 30,000 tonnes of milling wheat. Japan is in the market this week for 146,786 tonnes of wheat for its regular weekly tender.